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The Negro in Business 
in Philadelphia. 




An Investigation 

by the Armstrong Association 

of Philadelphia. 



The Negro in Business 
in Philadelphia. 









li 



?9 



An Investigation 

bv the Armstrong Association 

of Philadelphia 



s/l^S 




BUSINESSES CONDUCTED BY COLORED PEOPLE IN PHILADELPHIA. 
NOTE. — Each dot represents the location of a place of business. 



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C^ THE NEGRO IN BUSINESS IN PHILADELPHIA. 

In the early part of 1916 an investigation was made by the 
v^ Armstrong Association of Philadelphia of the number and 

-^^ character of businesses conducted by Negroes in the City of 

Philadelphia. A man or woman who owned or rented a room, 
or rooms for the purpose of selling merchandise, or giving 
service or getting orders for financial compensation was con- 
sidered to be conducting a business. Such workers as dress- 
makers or milliners, who went from house to house, or 
mechanics who hired themselves out to contractors, or who 
did jobbing but had no business offices, were not listed. 

As large a list of businesses in the city as could be obtained 
was used as a basis for Visiting, and when each place was vis- 
ited the proprietor was asked for information about any other 
places of business that he knew about which were conducted 
by colored people. While some places were probably omitted, 
it is believed that almost all were included in the investigation. 
Courteous and cordial responses in answer to the more import- 
ant inquiries of the investigation were met with in nearly all 
cases, although in answer to some of the questions such as 
those relating to the valuation of the plant, merchandise, 
rentals, credit, etc., the answ^ers were often not so readily forth- 
coming, and in a number of cases were refused. It was pos- 
sible, sometimes, by skillful questioning and observation to 
determine the answers even when they were not given by the 
party questioned. Wherever the question elicited an answer 
that seemed incorrect or of doubtful veracity it was not counted. 
A total of 450 business establishments was found. These 
were subdivided, as shown in Table A. 

Out of the total of 450, 364 stated that they conducted 
their business as individuals, and 50 were in partnerships. 

It will be noted from Table A that the businesses in which 
the largest numbers are engaged are (a) occupations growing 
out of domestic service, and (b) barber shops. There are, 
however, quite a number of tailors, grocers and coal, wood and 
ice dealers. The accompanying map shows graphically the 
distribution of the places of business in different parts of the 
city. 



TABLE A. 
CLASSIFICATION OF BUSINESSES ACCORDING TO NUMBER 

AND KIND. 

Antiques 1 

Banks 2 

Barbers 6(3 

Bicycle and Rubber Goods :> 

Blacksmith 1 

Building and Loan and Beneficial Associations n 

Cafes and Restaurants 6:^ [^ 

Carpenters and Builders 8 

Cr.tcrers 23 

C' aircaner 1 

C'.ilropodist 1 

Cigars, Tobacco and Billiards 12 

CigTrmaker 1 

Coal, Wood, Ice 1~ 

Confectionery and Cigars 3 

Decorators and Paperhangers 4 

Drug Stores 2 

Dyeing and Cleaning '. 1 

r'oct""cian 1 

Employment 1-1 ' 

Express and Storage 21 

F'orists 3 

Frrit and Produce 12 

Grocers 20 

Hair Culturists, Massage 25 v 

Hat Renovating Co 1 

Heaters and Ranges 3 

Hotels 9 

Tc" C'-eani and Bakery 7 

Jobbing 4 

Junk Dealers 4 

Landscape Gardener 1 

Laundries 4 

Mercantile Agency 1 

Music School 1 

Newspaper 1 

Newspapers, Candies, Magazines 1" 

Pi-nos and Organs 1 

Picture Store 1 

Plasterers. Cementers and Bricklayers 8 

Pool Rooms 2 

Printing 9 

Publishing House 1 

Real Estate 4 

Roots Herbs, Charcoal, etc 1 

Second-hand Dealers 8 

Shoemakers H 

Shoe Parlors and Bootblacks 17 

Shooting Gallery 1 

Sign Painter 1 

i^tationery 2 

Studios 2 

Tailors 20 

LTndertakers ''' 

Upholstery 9 

450 



There arc four, more or less, closely grouped centres of 
business, corresponding roughly to the chief residence sections. 
The largest section extends from Lombard street (oOO south 
of Market st.) southward, and there are many places of busi- 
ness both east and west, but especially west of Broad st. The 
colored residence section has recently been extending from 
Broad and Lombard streets to the southwest, and the busi- 
nesses have to some extent followed. The three other business 
sections are in West Philadelphia, Germantown, and in the 
section extending from 500 to 2300 north of Market, both east 
and west of Broad street. 

Of the 423 who gave their place of birth (see Table B) 
only 62 v.ere born in Philadelphia and 53 others in Pennsyl- 
vania. The majority are from the group of States directly 
south of Pennsylvania, comprising Virginia, Maryland, South 
Carolina, North Carolina and Delaware. 

TABLE B. 
STATE OF BIRTH. 

Alabama 1 

British Guiana 2 

Colorado 1 

Connecticut 1 

Delaware * 18 

District of Columbia 5 

Florida 4 

Georgia 9 

Illinois 5 

Iowa 2 

Jamaica 2 

Kentucky 1 

Louisiana 2 

Maryland 56 

Massachusetts 4 

Michigan 1 

Missouri 3 

New Jersey 20 

New York 5 

North Carolina 32 

Ohio 6 

Oklahoma 2 

Pennsylvania (Outside of Philadelphia) 53 

Philadelphia 62 

Rhode Island 2 

San Domingo 1 

South Carolina 20 

Tennessee 5 

Virginia 88 

West Indies 3 

West Virginia 7 

Unknown 27 

450 



Table C shows the leiij^th of residence in Philadelphia. It 
is not until the group has been here for from ten to twenty 
years that any appreciable number is recorded as bein;^- in busi- 
ness. This indicates that a stay of some len^^th in the city is 
necessr.r}' in order that the migrants may so learn to adjust 
themsehcs that they can carr)- on a successful business enter- 
prise. Tlie most successful business enterprises are, as a rule, 
conducted l;y those who have been in the city for some time. 
One !i:;n,lred and seventy-eight were reticent al:)Out stating 
v.hen their business was started, l:)Ut it is probable that if all 
of these were counted, it would very much swell the number 
of businesses conducted for only a short time. Sixty-two of 
the business men say that they were born in Philadelphia. 

TAPLK C. 
T EX'^.TH OF RESIDENCE IN PHILADELPHIA. 



Less 

than 

2 years 


2-3 

years 

9 


4-5 
years 


6-9 

years 


10-19 

years 


20-29 

years 


30 years and o^ er, 
hut not born in 
in Philadelphia 


Doubtful 


Total 


2 


15 


43 


134 


50 


20 


177 


450 



Table D shows the length of time in which a business has 
been conducted at the present address. Sixty-six per cent, of 
the businesses have not been in the present location for more 
than ten years. 

TABLE D. 
LENGTH OF TIME WHICH BUSINESS HAS BEEN CONDUCTED 
AT PRESENT ADDRESS. 



Less tJian 
2 years 


2-3 

years 


4-5 

years 


6-9 

years 


10-19 

years 


20-29 

years 


30 and 
over 


Doubtful 


Total 


111 


105 


93 


63 


53 


6 


5 


14 


450 



The question with regard to previous occupations and 
reasons for entering business gave such varied answers that 
they could not be tabulated. A large proportion of those an- 
swering the inquiries with regard to their previous occupa- 
tion who conducted cafes and restaurants stated that they had 
been chefs, cooks or domestics. One desired to have a business 
of his own; another "bought out his proprietor." Caterers, 
confectioners and hotel men showed the same previous occu- 
pations and the same reasons for entering their present occu- 
pations.^ Among the employment agents, upholsters and in 
many kinds of business the desire for independence and to 
work for one's self was frequently mentioned as a motive for 



starting in busine^. A number ot grocers, and coal^ w,ood 
and ice dealers spoke of their experience as employees in 
similar businesses. Many of the hair culturists and those who 
give massage treatment had previously been domestics Those 
conducting barber shops had in many cases formerly served 
apprenticeships in other shops. Plasterers and bricklayers 
and carj)enters had also served apprenticeships, mostly in the 
South. TABLE E. 

NUMBER OF EMPLOYEES IN BUSINESSES. 



Resrtaurants 



163 



Barber 
Shops 



102 



Caterers 



Carpenters 
and Builders 



Hotels 



Coal, Wood and 
Ice Dealers 



54 



Printing 
Shops 



Stationery 

Estab'ish- 

ments 


^ Building 
Grocery and T.oan 
Stores Associations 


Cigar- 
makers 


Employment 
Offices 


Under- 
takers 


Miscellaneous 


25 


25 25 


25 


22 


18 


96 



That the establishments are. as might be supposed, of 
small size is shown by Table F indicating the amount of floor 
space in business establishments. 
SQ FT OF FLOOR SPACE IN BUSINESS ESTABLISHMENTS. 



I ess than 
loO sq. ft. 


150-499 

sq. ft. 


500-999 

sq. It. 


1000-1999 
sq. ft. 


2000-2999 
sq. ft. 


3000-4999 
sq. ft. 


5000 
or over 


Unknown 


38 


117 


55 


98 


35 


32 


13 


62 



Answers with regard to plant and merchandise were dif- 
ficult to verify and in many cases could not be gotten. This 
was esjiecially true of answers with regard to the value of mer- 
chandise. Such answers as could be obtained and were 
believed to be accurate were as follows : 

TABLE G. 
ESTIMATED VALUATION OF THE TOOLS, FIXTURES, ETC. 



$50 


$50- 
$199 


$200- 
$399 


$400- 
$499 


$500- 
$799 


$800- 
$999 


$1000- 
$1999 


$2000 
and 
over 


Doubtful 

and 
Unknown 


Total 


4 


78 


112 


54 


55 


8 


17 


73 


49 


450 



TABLE H. 

ESTIMATED VALUATION OF MERCHANDISE. 


IIS 


$50- 
$99 


$100- 
$199 


$200- 
$399 


$400- 
$599 


$600- 
$799 


$800- 
$999 


$1000- 
$1999 


$2000 
and 
over 


Doubtful 

and 
Unknown 


Total 


3 


11 


37 


22 


28 


19 


9 


10 


4 


307 


450 



TABLE J. 

NUMBER OF OWNERS AND RENTERS, INCLUDING THE 
VARYING AMOUNT OF RENTALS PAID. 



Less 
than 
$12 


$12- 
$14 


$15- 
$19 


$19- 
$24 


$25- 
$29 


$30- 
$34 


$35- 
$39 


$40- 
$45 


$50 and 
over 


Doubtful 


Owners 


Total 


22 


23 


39 


113 


69 


30 


10 


2 


2 


59 


81 


450 



Gross receipts as given are recorded in Table K. 

TABLE K 
GROSS ANNUAL RECEIPTS FROM BUSINESS. 



Less 
than 
$1000 


$1000- 
S1999 


$2000- 
$2999 


$3000- 
$3999 


$4000- 
$4999 


$5000- 
$9999 


$10000- 
$14999 


$15000 
and 
above 


iJOubtlul 

and 
Unknown 


Total 


44 


194 


78 


33 


20 


33 


4 


8 


36 


450 



The systems of bookkeeping used are shown in Taljle L. 

TABLE L. 
THE SYSTEMS OF BOOKKEEPING USED. 



Ledger 


Journal 


Cash Book 


Day Book 


No Book 


Yes No 


Yes 


No 


Yes 


No 


Yes 


No 




93 217 


26 


77 


272 


1.59 


101 


256 


66 



The statement of the systems of bookkeeping used were 
difficult to ol^tain and are incomplete. 

One hundred and seventy- one gave no information as to 
tlic frequenc}- v\ ith \\hich they balanced their accounts. Two 
said they balanced them daily, 124 weekly, 2 bi-monthly and 
138 monthly, 5 every two months, 6 quarterly and 3 irregularly. 

Information was also obtained in a few cases regarding 
liabilities and the frequency with which inventories were 
taken, but it has not been thought that the answers are of 
sufficient value to record. 

127 gave credit occasionally, 281 said they never gave it, 
and 11 said they gave it habitually. 88 stated that they re- 
ceived credit, and 221 that they did not receive it. 

In reply to the questions as to the character of customers, 
163 stated that their customers were largely or entirely colored, 
nnd 24 that they were largely or entirely white; 212 served a 
large number of both white and colored. The remaining 51 
did not answer this question. 

The group of business men receiving the largest amount 
of white patronage was the caterers. Out of 23 in this kind of 



business, 10 reported that their business vtas almost entirely 
with white customers. 

This investigation was made before the great migration 
from the South, caused largely by present war conditions. 
Undoubtedly this will greatly increase the number of colored 
businesses conducted by colored people in Philadelphia, but it 
has probably not done so yet to any extent. The investigator 
found that fre((uently in some sections of the city businesses 
were started and conducted for a very short time and then 
failed. This was due in many cases to the fact that the enter- 
prises were conducted by newcomers who had not the experi- 
ence with local conditions, to enable them to succeed, but who 
would in many cases be able to do so later. Similar experi- 
ences will probably occur more frequently among the large 
number of migrants of 1917. 

A summary review of this study shows a very large 
number of businesses of small size. The small size of the busi- 
nesses and the lack of efficiency frequently found may be due 
to one or to several of the following causes : Inexperience, 
lack of training, lack of ability, difficulty in securing capital. 
The Negro who wishes to enter business is usually inexperi- 
enced and untrained and has practically no opportunity of 
apprenticeship in the stores or offices of white business men. 
There are very few Negro business men to aporentice him. It 
is true also that no business courses are available for them iu 
the schools ; but even if such courses were offered they would, 
although of much assistance, be of small value in comparison 
with the apprenticeships available to white boys and girls and 
young men and women. It is not to be wondered at, there- 
fore, that the number of Negroes in business is small and that 
they show lack of training; neither is it to be wondered at 
that in spite of the superior character of the schools of our 



city such a small proportion of the businesses co>nducted here 
by colored people are conducted by Philadelphians. Business 
opportunities for Mfegroes in the South are in many lines as 
good or better than in Philadelphia and in the building trades 
they are much better. 

We Strongly Recommend 

( 1 ) That employers take some care to inquire from the 
Armstrong Association of Philadelphia and from the public 
high schools for the names of promising young men and 
women who are ambitious, but who, on account of the lack 
of opportunity, are more easily obtainable for a moderate 
compensation than they would be if they were white. 

(2) That on account of the great lack of apprenticeship 
the Public Schools introduce into their curriculum courses 
which shall as soon as possible take the place of the appren- 
ticeships which the young colored men or women are unable 
to obtain. 



SAMPLE BUSINESSES. 



The following cases have been chosen as representing dif- 
ferent kinds of businesses, especially the more successful ones. 

Case No. 1. This is a cigar and tobacco store. The pro- 
prietor came to Philadelphia from Western Pennsylvania 
about fifteen years ago and secured employment with the Mid- 
vale Steel Works. About four years ago he sustained the loss 
,f an arm. As compensation for his injury the company 
allowed him a sum of money, and wishing to support himself 
he opened a cigar store in the northwestern section of the city 
The proprietor had no experience in business but by close per 
".onal application has built up rather a successful trade. H'*" 
stock and fixtures represent an outlay of about $3500. With 
part of his indemnity and savings he bought the house in 
which he is doing business which greatly reduces his overhead 
expenses. His gross receipts for 1917 were $1800. He does a 
strictly cash business and serves both white and colored cus- 
tomers. This man depends on a cash register to keep his 
accounts straight. He usually pays cash for his supplies thus 
saving his discounts. 



Case No. 2. This is a contractor and builder. The man 
came to Philadelphia from Virginia 18 years ago, where he had 
served an apprenticeship as a carpenter. Finding it hard to 
get work at his trade he secured a job as porter in a large mer- 
cantile concern. A few years later he found an opening in a 
white shop to work at this trade and after working there a 
few years decided to go in business for himself. For the past 
ten years he has carried on a large contracting business, 
employing last year as many as fifty workmen at one time, 
and had a business turnover of more than $50,000. He main- 



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tains exceptionally fine credit, both with the supply firms and 
with the banks. His customers are both white and colored, 
and many of them speak of him in the highest terms. Lie main- 
tains two auto-trucks and is doing a prosperous business. He 
keeps a fuil set of books, balancing his accounts monthly. 
Employs a Ijookkeepcr and foreman. Tools, fixtures and auto- 
truclvs represent an outlay of $2000. Shop rent $20 per month. 



Case No. 3. This is a tailor shop. The pro'prietor came 
from Georgia ten years ago and has been in business ever since. 
He graduated from Hampton in 1S98. having served his 
a prenticeship at that institution. This man came to Philadel- 
phia, hoping to improve his business. His plant, tools and 
stock are worth about $1000. He employs three helpers and 
had a businc s turnover last year of $3800. This represents 
a larger net return than usual owing to the nature of the busi- 
ness. Most of his work consists in altering, pressing and 
repairing. Verv little money is required for purchase of goods 
so that the pro irietor makes a fairly good income from his 
business. His customers are both white and colored. He 
gives credit occasionally but seldom fails to collect his bills. 
The floor space measures 15x24 feet, with a partition, making 
two rooms. He pays $20 per month rent. 



Case No. 4. This business is what is known as a "Beauty 
Parlor." The proprietor came to Philaadelphia about twelve 
years ago from Maryland and engaged in the work of seam- 
stress, going out to work by the day. After saving up a little 
money she took a course in hair culture, massage and electric 
treatment and opened a small shop in the north-central part 
of the city. Her stock and fixtures are estimated at $700, 
while she claims to do a business of $2500 a year. She rents 



12 



the entire house at a cost of $25.00 per month. The Ui)per 
rooms are rented out. with the exception of two, which she 
uses for herself. The rental of the rooms covers the entire 
rental of the house, giving her the store and her own rooms 
free. She seems to be more shrewd than intelligent, with but 
little education. Her customers are both white and colored, 
and she does strictly cash business. She has no regular system 
of bookkeeping, claiming that she has no accounts, so there 
is no need to bother with books. Her workroom is 15x30 feet 
and is very neatly kept. 



Case No. 5 is a grocery store. The proprietor came to 
Philadelphia from Virginia ten years ago, having worked the 
greater part of his life on a farm. The farm was owned by his 
father, and upon his death was sold and the proceeds divided 
between three children. With his part the proprietor o;)ened 
a small poultry and produce store, specializing in Virginia pro- 
duce. With part of the money coming to him from the sale 
of the farm he purchased the house, using the upper floor for 
family use and the lower, which was a store, for his business. 
Floor space measures 16x28 feet. Within the past year he has 
greatly enlarged his business by building an addition — for the 
poultry business exclusively. In addition to the produce he 
has gradually put in a stock of staple groceries. The property 
represents an outlay of $4000, stock on hand $600, fixtures 
$300. He does a strictly cash business and has no open 
accounts. His place of business is located in a mixed neigh- 
borhood, and both white and colored customers patronize him 
Ledger, cash book and day book are kept, which are balanced 
weekly. After starting his business he took a course in 
accounting in order that he could run his business more suc- 
cessfully. Inventory taken quarterly. 



13 



With l)ut (ine exception the cases cited above represent 
Negroes who came from the South. The one exception was 
frcm the a\ extern part of the State. This is not meant to show 
(hat Philadelphia Negroes are not engaged in business, but that 
the more productive kinds are in the hands of the Southern 
Negroes. Amonj;- Philadelphia Negroes who are engaged in 
business the lines run "more to that form commonly known as 
personal service, such'- as barber shops and catering establish- 
ments. ' 

(_)ne of the few notable exce tions to the above statement 
is the conduct of a l^anking establishment being successfully 
run by two Philadelphia Negroes. This bank show'ed a gross 
business of $178,30-1.01 as of August 21, 1917. The real estate 
owned by them amounts to" $102,600.00, with a surplus and 
undivided profits of $20,162.48. This represents a remarkable 
growth when compared with the statement as of January 21. 
1916, at which time the total resources were $10,728.62. This 
bank employs five young colored women and two young men 
as tellers, clerks, bookkeepers, etc. In addition the proprietors 
render service, one of the partners being cashier. In addition 
to the banking business they also do a large real estate broker- 
age business. The bank is centrally located and is splendidly 
equipped. Before engaging in the banking business here one 
of the partners conducted banks successfully in two cities in 
Virginia. The other partner was engaged for some time in 
the insurance and real estate brokerage business. This bank 
has a large number of white depositors. The upper floors of 
the bank building are used as apartments and are occupied by 
a select class of wdiite tenants. 



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